New strategies urged to fill student housing gap

Colliers suggests office conversion, PBSA, and a build-to-rent model.

Hong Kong’s student housing gap can be potentially filled with comfortable housing options in suitable locations, especially with post-secondary enrollment rising amongst non-local students, Colliers Hong Kong said.

The firm suggests repurposing existing buildings, noting the potential to convert low-occupancy Grade B and C offices into student housing, similar to previous conversions of commercial properties into hotels or guesthouses.

Colliers emphasised the need for government policies that support such conversions, especially in areas near universities where available properties are scarce. 

Purpose-Built Student Accommodation (PBSA) offers students a range of housing styles, from cluster flats to studio apartments, within complexes designed to promote academic success. Unlike traditional housing, PBSAs provide communal study areas and social spaces.

Colliers also urged the government to consider the "Build-to-Rent" (BTR) model, which has gained popularity in the US, UK, and Australia for addressing rental housing demand. 

The model attracts significant institutional investment, as seen in Western markets, and could be applied to the PBSA sector in Hong Kong. Mainland China has promoted residential leasing since 2016, offering "rent-only" land in key cities like Shanghai.

With recent drops in land prices and reduced interest in residential land, Colliers sees potential in exploring both PBSA and BTR opportunities. 

The firm also recommends optimising land use in the Northern Metropolis, where over 60 hectares are reserved for post-secondary education development in areas like Hung Shui Kiu/Ha Tsuen New Development Area, Ngau Tam Mei, and New Territories North New Town.

These initiatives are expected to drive strong demand for student and co-living accommodations, Colliers added.